TIDMPTG
RNS Number : 7904Q
Portland Gas plc
20 April 2009
+---------------------------------------+---------------------------------------+
| For Immediate Release | 20 April 2009 |
+---------------------------------------+---------------------------------------+
Portland Gas plc
("Portland Gas", "PG" or "the Company")
PRESS RELEASE
Interim results for the six months ended 31 January 2009
Portland Gas plc (AIM: PTG), the independent sub-surface gas storage company,
today announces its unaudited interim results for the six months ended 31
January 2009.
Overview and highlights
* The first funding process for the Portland project was halted owing to the
"credit crunch" in November 2008. BNP Paribas have since been appointed as
project finance advisors and a new funding process for the Portland project is
expected to commence in May 2009.
* Following a period of bi-lateral discussions with interested parties a new
data-room was opened in March 2009 for the Portland project.
* All the remaining pre-start planning conditions for the Portland project were
discharged during February 2009 and it is now ready to move into the
construction phase.
* The Larne Lough project Environmental Impact Assessment work continues with a
planning application submission target for Q4 2009 following a further period of
consultation with stakeholders after a public exhibition scheduled for June
2009.
* Progress made with new ventures in both Germany and Spain during the period.
* The Board of Directors was strengthened in December 2008 with the appointment of
Jonathan Davie.
* Cash position - GBP4.8 million (31 July 2008 - GBP9.3 million)
* Net asset position - GBP22.0 million (31 July 2008 - GBP22.7 million)
For further information please contact:
+--------------------------------------------------+----------------------------+
| Portland Gas plc | 020 8332 1200 |
| Andrew Hindle, Chief Executive Officer | |
| Craig Gouws, Chief Financial Officer | |
+--------------------------------------------------+----------------------------+
| | |
+--------------------------------------------------+----------------------------+
| PR - Watershed | 01308 420785 |
| Sara Hudston | |
+--------------------------------------------------+----------------------------+
| | |
+--------------------------------------------------+----------------------------+
| Investor Relations - Buchanan Communications | 020 7466 5000 |
| Ben Willey | |
+--------------------------------------------------+----------------------------+
| | |
+--------------------------------------------------+----------------------------+
| Nominated Advisor and Broker - Seymour Pierce | 020 7107 8000 |
| Jonathan Wright | |
| Sarah Jacobs, Richard Redmayne | |
+--------------------------------------------------+----------------------------+
Chairman and CEO's Statement
Portland Gas' strategy is to identify and develop sites for the underground
storage of gas in sub-surface salt caverns. Extremely challenging market
conditions prevailed during the first six months of this financial year and this
has had an understandable impact upon the Company's ability to progress its
joint venture funding process in support of the Portland project. The first
joint venture funding process was halted in the midst of the "credit crunch" as
previously reported in November 2008 and the arrangement with NM Rothschild &
Sons was brought to a close. Since that time expenditure on the Portland project
has been maintained but kept to a minimum commensurate with planning compliance
and the preservation of commercial value. A new funding process is expected to
commence in May 2009.
The Group has recorded a loss for the six month period ended 31 January 2009 of
GBP736,197. The loss for the period, together with the balance of GBP1,960,345
brought forward, leaves a retained loss of GBP2,696,542 to be carried forward.
During the period GBP3.7 million was capitalised in respect of the
Portland project bringing the carrying value of our investment in this project
to GBP18.8 million at 31 January 2009 (31 July 2008 - GBP15.1 million). Further
capitalised expenditures of GBP0.3 million in respect of the Larne Lough project
have brought the investment value in that project to GBP1.6 million (31 July
2008 - GBP1.3 million). The Group's cash and net asset positions are GBP4.8
million (31 July 2008 - GBP9.3 million) and GBP22.0 million (31 July 2008 -
GBP22.7 million).
The Portland Project
During the period since halting the previous funding process, efforts have been
concentrated upon evaluating all options to secure shareholder value.
A strategic review of the project has highlighted the possibility of a phased
approach to construction that can offer flexibility in both capacity and
injection/withdrawal capability. Advantages have also arisen from the fall in
commodity prices that has enabled the Company to redetermine the development
cost at a significant discount to 2008 estimates.
The Company has continued to engage in bi-lateral discussions with a range of
parties to review potential partnerships and funding structures. This led in
March 2009 to the re-opening of a data-room for potential investors containing
over 3,000 documents spanning the development of the project over the past five
years.
Access to the data-room has been initially given to five utilities/oil and gas
companies on an informal basis as a result of the bi-lateral discussions and
more are expected to join the process. With the help of newly appointed
advisors, BNP Paribas, the Company intends to seek project finance for the
project company, Portland Gas Holdings Limited ("PGHL"). The timing and
structure of the new process will be agreed with interested parties prior to the
formal launch of the process, expected in May 2009. Following a period of
due-diligence by parties who have expressed an interest in the project, PG
expects to conduct a sale of equity in the project, by way of auction if
appropriate, later in 2009. Although such a process will involve 100% of the
equity in PGHL being available for purchase, it is probable that the proceeds
from the sale of equity will be used by PG to fund an appropriate retained
equity interest in the project company. Under the proposed structure, equity
partners, including PG, will each have long-term capacity agreements with the
project company which will be offered as security against project finance in
addition to partners providing financial guarantees as required. It is
anticipated that the full funding process will be significantly advanced by the
end of 2009 after due-diligence, project finance negotiations and completion of
legal documentation. The Company has entered into preliminary discussions with
the European Investment Bank ("EIB") concerning project finance to support the
joint venture funding. The financing of large-scale energy projects which
promote the security and diversification of energy supply is a priority
objective within the EIB's lending strategy and PG hope that the Portland
project will be eligible for funding within its portfolio of investments.
All remaining pre-start of construction planning conditions for the Portland
project were discharged during February 2009. In a separate work stream, to meet
the target of first gas storage operations in April 2013, the Company is
negotiating financial arrangements to commence construction of the well-pad in
July 2009 on the Portland site. In addition PG will need to order materials so
that the pipelines across Weymouth Bay can be constructed in the summer of 2010
ahead of Olympic Games related sailing activities in 2011 and 2012.
Larne Lough Project
Further progress has been made in Northern Ireland on the Larne Lough project
with partner Moyle Energy Investments Limited. The Environmental Impact
Assessment is now well underway and a full project cost estimation exercise has
been completed by consultants, CB&I UK Limited, on behalf of the project
company, Portland Gas NI Limited ("PGNI"). Following bi-lateral discussions with
potential investment partners in the project we have decided to postpone
drilling of the planned borehole at Ballylumford until the Front End Engineering
Design work commences in 2010. This will enable the ongoing Common Arrangements
for Gas ("CAG") process managed by the gas regulators in Northern Ireland and
Ireland to set the framework for gas storage tariffs within a proposed
"all-island" gas market to be completed. The commercial certainty that would be
added through finalisation of the CAG tariff process makes it sensible to delay
commitment of funds to drill and evaluate salt cores adjacent to the site of the
proposed caverns below Larne Lough, until after this process has been completed.
The CAG process is important for the development of commercial gas storage on
the island which can be accessed by shippers and suppliers in Ireland, Northern
Ireland and Great Britain.
Discussions with potential investment partners to date have reinforced our view
that the technical risk in the project is low since a very good definition of
the salt sequence was derived from the 3D seismic programme acquired by PGNI in
2007. To ensure that there is no delay to the project, with a target of first
gas operations in 2014, PGNI proposes to submit the planning application during
Q4 2009. This will follow further consultation with stakeholders, including a
public exhibition of proposals being scheduled for June 2009 on Islandmagee.
Other Projects
Elsewhere the Company is looking to a future flow of projects in mainland
Europe. A review of the geology and infrastructure has been completed in
Germany and The Netherlands with a local partner. This work has resulted in the
identification of an area of focus in North-West Germany and further evaluation
work is ongoing. The next step will be the acquisition of mining rights for the
salt prior to undertaking a technical programme, likely to include drilling and
seismic acquisition to confirm the suitability of the area. Portland Gas has an
80% interest in the joint venture.
Following an evaluation of salt sequences and the gas market in Spain, the
Company's wholly owned subsidiary, Portland Gas ESP, S.L., has submitted an
application for a gas storage 'exploration' licence and is awaiting advice from
authorities on the status of the application.
Given the ongoing restrictions in the equity markets the Directors are
continuing to limit spending of cash resources until investment is in place from
industry partners and project finance for the Portland project. The Board fully
recognise the importance of progressing this project and every effort is being
made to adhere to the original construction timetable as both a corporate and
national priority. In the meantime, efforts continue in parallel to advance the
remaining projects without undue strain upon the Company's financial resources.
The Board of Directors was strengthened in December 2008 with the appointment of
Jonathan Davie who brings a wealth of City experience. Our small team of
dedicated staff has worked very hard and effectively in very challenging
conditions and we would like to take this opportunity to thank them and our
shareholders for their continued support. The Company is optimistic for the
future of the gas storage business with an ever-increasing requirement for gas
storage facilities over the coming decades based on a growing reliance on gas in
Europe, particularly for power generation.
Ken Ratcliff - Non-executive Chairman
Andrew Hindle - Chief Executive Officer
20 April 2009
CONSOLIDATED INCOME STATEMENT for the six months ended 31 January 2009
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | Notes | | Six | | Six | | Year |
| | | | months | | months | | ended 31 |
| | | | ended 31 | | ended 31 | | July |
| | | | January | | January | | 2008 |
| | | | 2009 | | 2008 | | Audited |
| | | | Unaudited | | Unaudited | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | GBP | | GBP | | GBP |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Continuing operations | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Revenue | | | - | | - | | - |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Cost of sales | | | - | | - | | - |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Gross profit/(loss) | | | - | | - | | - |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Administrative expenses | | | (894,115) | | (927,433) | | (1,767,017) |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Operating loss | | | (894,115) | | (927,433) | | (1,767,017) |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Investment revenues | | | 157,918 | | 129,263 | | 197,396 |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Loss before taxation | | | (736,197) | | (798,170) | | (1,569,621) |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Taxation | | | - | | - | | - |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Loss for the period | | | (736,197) | | (798,170) | | (1,569,621) |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| Basic and diluted loss | 3 | | 1.05p | | 1.19p | | 2.33p |
| per share | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-----------+--+-----------+--+-------------+
CONSOLIDATED BALANCE SHEET as at 31 January 2009
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | Notes | | 31 | | 31 | | 31 |
| | | | January | | January | | July |
| | | | 2009 | | 2008 | | 2008 |
| | | | Unaudited | | Unaudited | | Audited |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | GBP | | GBP | | GBP |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Non-current assets | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Plant and equipment | | | 18,807,090 | | 54,617 | | 15,195,167 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Intangible assets | | | 1,599,167 | | 11,605,687 | | 1,263,659 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Total non-current assets | | | 20,406,257 | | 11,660,304 | | 16,458,826 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Current assets | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Trade and other | | | 167,995 | | 430,250 | | 305,520 |
| receivables | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Available for sale assets | | | 12,500 | | 12,500 | | 12,500 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Cash and cash equivalents | | | 4,799,588 | | 3,650,735 | | 9,276,964 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Total current assets | | | 4,980,083 | | 4,093,485 | | 9,594,984 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Current liabilities | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Trade and other payables | | | (982,389) | | (1,174,387) | | (1,408,848) |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Net current assets | | | 3,997,694 | | 2,919,098 | | 8,186,136 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Non-current liabilities | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Obligations under | 4 | | (2,366,297) | | - | | (1,963,519) |
| contractual and lease | | | | | | | |
| agreements due after one | | | | | | | |
| year | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Net assets | | | 22,037,654 | | 14,579,402 | | 22,681,443 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Shareholders' funds | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Share capital | | | 7,038,473 | | 6,780,184 | | 7,038,473 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Share premium | | | 8,576,705 | | - | | 8,576,705 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Merger reserve | | | 8,988,112 | | 8,988,112 | | 8,988,112 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Share based payment | | | 130,906 | | - | | 38,498 |
| reserve | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| Retained earnings | | | (2,696,542) | | (1,188,894) | | (1,960,345) |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | 22,037,654 | | 14,579,402 | | 22,681,443 |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+--------+--+-------------+--+-------------+--+-------------+
CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31 January 2009
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | Notes | | Six | | Six | | Year |
| | | | months | | months | | ended 31 |
| | | | ended 31 | | ended 31 | | July |
| | | | January | | January | | 2008 |
| | | | 2009 | | 2008 | | Audited |
| | | | Unaudited | | Unaudited | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | GBP | | GBP | | GBP |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Net cash (used in) | 5 | | (1,317,489) | | (1,668,339) | | (1,275,246) |
| operating activities | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Investing activities | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Investment revenues | | | 157,918 | | 129,263 | | 197,396 |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Purchases of intangible | | | (335,508) | | (2,175,794) | | (5,645,493) |
| assets | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Purchase of plant and | | | (2,982,297) | | (58,590) | | (63,887) |
| equipment | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Purchase of financial | | | - | | (12,500) | | (12,500) |
| assets | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Net cash (used in) | | | (3,159,887) | | (2,117,621) | | (5,524,484) |
| investing activities | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Financing activities | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Proceeds on issue of | | | - | | 4,000,000 | | 12,639,999 |
| ordinary shares | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Net cash generated from | | | - | | 4,000,000 | | 12,639,999 |
| financing activities | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Net (decrease)/increase | | | (4,477,376) | | 214,040 | | 5,840,269 |
| in cash and cash | | | | | | | |
| equivalents | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Cash and cash equivalents | | | 9,276,964 | | 3,436,695 | | 3,436,695 |
| at beginning of period | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| Cash and cash equivalents | | | 4,799,588 | | 3,650,735 | | 9,276,964 |
| at end of period | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
| | | | | | | | |
+---------------------------+---------+--+-------------+--+-------------+--+-------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31
January 2009
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | Share | Share | Merger | Share | Retained | Total |
| | Capital | premium | reserve | based | earnings | equity |
| | | | | payment | | |
| | | | | reserve | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Balance at 31 | 117,782 | - | 11,650,514 | - | (390,724) | 11,377,572 |
| July 2007 | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Loss for the | - | - | - | - | (798,170) | (798,170) |
| period | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Total | - | - | - | - | (798,170) | (798,170) |
| recognised | | | | | | |
| income and | | | | | | |
| expenses for | | | | | | |
| the period | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Issue of | 40,000 | - | 3,960,000 | - | - | 4,000,000 |
| equity share | | | | | | |
| capital | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Portland Gas | 6,622,402 | - | (6,622,402) | - | - | - |
| plc | | | | | | |
| capitalisation | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Balance at 31 | 6,780,184 | - | 8,988,112 | - |(1,188,894) | 14,579,402 |
| January 2008 | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Loss for the | - | - | - | - | (771,451) | (771,451) |
| period | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Total | - | - | - | - | (771,451) | (771,451) |
| recognised | | | | | | |
| income and | | | | | | |
| expenses for | | | | | | |
| the period | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Issue of | 258,289 | 8,576,705 | - | - | - | 8,834,994 |
| equity share | | | | | | |
| capital | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Share based | - | - | - | 38,498 | - | 38,498 |
| payments | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Balance at 31 | 7,038,473 | 8,576,705 | 8,988,112 | 38,498 | (1,960,345) | 22,681,443 |
| July 2008 | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Loss for the | - | - | - | - | (736,197) | (736,197) |
| period | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Total | - | - | - | - | (736,197) | (736,197) |
| recognised | | | | | | |
| income and | | | | | | |
| expenses for | | | | | | |
| the period | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Share based | - | - | - | 92,408 | - | 92,408 |
| payments | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| Balance at 31 | 7,038,473 | 8,576,705 | 8,988,112 | 130,906 | (2,696,542) | 22,037,654 |
| January 2009 | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
| | | | | | | |
+----------------+-----------+-----------+-------------+---------+-------------+------------+
NOTES TO THE INTERIM RESULTS for the six months ended 31 January 2009
1.Basis of preparation
The condensed financial statements have been prepared using accounting policies
consistent with International Financial Reporting Standards and in accordance
with International Accounting Standard (IAS) 34 Interim Financial Reporting.
Non-statutory accounts
The unaudited results contained in this document do not constitute statutory
accounts as defined in Section 399 of the Companies Act 2006. A copy of the
statutory accounts of the Company for the year ended 31 July 2008 has been
delivered to the Registrar of Companies. The audit report on these accounts is
unqualified, did not include references to any matters to which the auditors
drew attention by way of emphasis without qualifying their reports and did not
contain a statement under Sections 237(2)-237(3) of the Companies Act 1985.
Accounting policies
The condensed financial statements have been prepared under the historical cost
convention, except for the inclusion of financial instruments at fair value.
The same accounting policies, presentation and methods of computation are
followed in these condensed financial statements as were applied in preparation
of the Group's financial statements for the year ended 31 July 2008.
2. Segment information
The Group has only one material reportable business segment, which is the
development of gas storage facilities in the United Kingdom which is not a
seasonal or cyclical business. All operations are classified as continuing.
+-----+------------------------------+---+------------+--+-------------+--+-----------+
| 3. | Loss per share | | Six months | | Six months | | Year |
| | | | ended 31 | | ended 31 | | ended 31 |
| | | | January | | January | | July |
| | | | 2009 | | 2008 | | 2008 |
| | | | Unaudited | | Unaudited | | |
+-----+------------------------------+---+------------+--+-------------+--+-----------+
| | | | p | | p | | p |
+-----+------------------------------+---+------------+--+-------------+--+-----------+
| | Basic loss per | | 1.05 | | 1.19 | | 2.33 |
| | share | | | | | | |
+-----+------------------------------+---+------------+--+-------------+--+-----------+
| | | | | | | | |
+-----+------------------------------+---+------------+--+-------------+--+-----------+
The calculation of basic loss per share is based upon a loss of GBP0.7m (January
2008: GBP0.8m, July 2008: GBP1.6m) divided by the weighted average number of
ordinary shares in issue of 70,384,727 (January 2008: 67,089,549, July 2008:
67,381,698).
In accordance with IAS 33, diluted earnings per share calculations are not
presented as assumed conversion of outstanding share options would be
anti-dilutive.
4. Obligations under contractual and lease agreements due after one year
The obligation under a lease agreement is to be settled over a period of 13.5
years while GBP500,000 of the other contractual arrangements will be settled
within a period of 2 years, the balance will be settled on a straight line basis
over a period of 20 years. The increase in the lease agreement liability during
the period is GBP402,778.
NOTES TO THE INTERIM RESULTS for the six months ended 31 January
2009 (continued)
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| 5. | Cash (used in) | | Six months | | Six months | | Year |
| | operations | | ended 31 | | ended 31 | | ended 31 |
| | | | January | | January | | July |
| | | | 2009 | | 2008 | | 2008 |
| | | | Unaudited | | Unaudited | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | | | GBP | | GBP | | GBP |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | Operating loss for the year | | (894,115) | | (927,433) | | (1,767,017) |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | Depreciation | | 11,044 | | 8,373 | | 19,342 |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | Decrease /(increase) in | | 137,525 | | (101,914) | | 22,816 |
| | trade and other receivables | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | (Decrease)/increase in trade | | (664,351) | | (647,365) | | 216,121 |
| | and other payables | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | Share option expense | | 92,408 | | - | | 38,498 |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | Shares issued in lieu of | | - | | - | | 194,994 |
| | bonus | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | Cash (used in) operations | | (1,317,489) | | (1,668,339) | | (1,275,246) |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
| | | | | | | | |
+-----+------------------------------+--+-------------+--+-------------+---+-------------+
6. Dividend
The Directors do not recommend payment of a dividend.
7. Publication of the interim report
This interim report is available on the Company's website www.portland-gas.com.
Notes to Editors:
Background on Portland Gas plc
Portland Gas' business is focused on the development of two gas storage projects
in the United Kingdom at Portland and Larne Lough. The two projects could
between them provide over 10% of the total UK and Ireland peak daily demand in
the latter part of the next decade. The Company is also developing a pipeline of
new projects in mainland Europe initially focussing on potential projects in
Germany and Spain. The Company is one of only a few in Europe focused
specifically on gas storage development, a sector with significant growth
potential in Europe over the coming decades.
Portland Project
At 1000 million cubic metres ("mcm") or 35 billion cubic feet ("bcf") of working
gas, it will be the largest onshore gas storage facility in the UK. Planning
permission was granted by Dorset County Council in May 2008 and Pipeline
Construction Authorisation was granted by the BERR (now known as the Department
of Energy and Climate Change) in July 2008. The gas storage facility is designed
to inject or withdraw gas at 20mcm per day. On peak demand days the withdrawal
rate could be boosted to 30mcm per day. The latest cost estimate for the project
is GBP456m, including GBP19m of development costs to date. The project will use
brine compensation technology and will not require cushion gas. The project is
owned 100% by Portland Gas plc, through wholly owned subsidiary, Portland Gas A
Limited. The project company, Portland Gas Holdings Limited ("PGHL") is itself a
wholly owned subsidiary of Portland Gas A Limited ("PGA"). Portland Gas Storage
Limited and Portland Gas Transportation Limited are wholly owned subsidiaries of
PGHL.
Larne Lough
The proposed 500mcm (18bcf) facility will be the largest on the island of
Ireland and make a significant contribution to the security of gas supplies.
Portland Gas plc has a 65% interest in the Larne Lough project. Its partner in
the project is a subsidiary of Northern Ireland Energy Holdings Limited, the
owner of the Scotland to Northern Ireland gas pipeline. The facility is being
designed to inject gas at 12mcm and withdraw gas at 22mcm per day. The cost of
construction has been estimated at GBP229m, including cushion gas. The project
company is Portland Gas NI Limited, a subsidiary of PGA.
Further information is available on the Company's website www.portland-gas.com.
To provide more information to shareholders and the market, copies of
independent competent person reports are posted on the website.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UBVVRKWRSAAR
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